Completion of transaction combining NMDC and NPCC creates leading engineering and construction powerhouse

• Transaction unlocks significant value creation potential for the combined group for shareholders and wider stakeholders through revenue diversification, cost synergies, increased scale and resilience to market cycles
• NMDC becomes one of the largest companies on the Abu Dhabi Securities Exchange by market capitalisation, providing a positive impact on overall demand and liquidity

Abu Dhabi, UAE: Following the shareholder vote on 14 December 2020 and the receipt of all required regulatory approvals, National Marine Dredging Company PJSC (“NMDC”) confirms the legal completion of its combination with National Petroleum Construction Company PJSC (“NPCC”).

The combination of NMDC and NPCC (the “Combined Group”) creates one of the leading integrated oil & gas and marine services EPC players, with an established footprint across MENA and South Asia. The businesses are complementary, and the transaction provides significant revenue diversification for the Combined Group. By creating a single platform, the Combined Group is ideally positioned to capture growth opportunities in the UAE and in key regional markets, with strong capabilities across the value chain to support future expansion plans.

As previously outlined, the mandatory convertible bonds that were issued to the shareholders of NPCC as consideration for the acquisition by NMDC of the entire share capital of NPCC have converted into 575,000,000 ordinary shares in NMDC.

Eng. Yasser Zaghloul, CEO of NMDC, commented on the completion, “Today is the beginning of the next phase of the journey for our companies. Together we will focus on creating a new success story, from Abu Dhabi for the world, which we hope will benefit our stakeholders, shareholders, the UAE and our employees.”

Eng. Ahmed Al Dhaheri, CEO of NPCC, said, “We are excited to commence our collaboration with NMDC, and we are looking forward to working together on projects that will further strengthen our ‘Made in UAE’ value proposition. This promising venture will further solidify our position as regional EPC champion, and support our efforts to explore new growth avenues across the value chain."

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Ahmad Ataya, ahmad.ataya@edelman.com 

Edelman Smithfield, London
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Latika Shah,  lshah@smithfieldgroup.com  

About NMDC

NMDC is a leading contractor in the field of dredging and marine civil construction in the Middle East spanning across important sectors including energy, environment, seaborne trade and tourism. The group delivers a range of services including the construction of port infrastructure, land reclamation, coastal defense and deepening and maintenance of waterways. The group owns and operates a modern fleet of dredgers supported by a wide range of auxiliary equipment including tugs, workboats, barges, and survey vessels.

About NPCC

NPCC is a world class Engineering, Procurement and Construction company that provides total EPC solutions to both the Offshore and Onshore Oil & Gas sector. It provides engineering, procurement, project management, fabrication, installation and commissioning to project owners and operators. It was established in 1973. Through Senaat, NPCC is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.

© Press Release 2021